Small business hiring picks up in Phoenix while pay falls

Small-business hiring in Phoenix inched up last month, but the average paycheck in March fell slightly, according to the latest Surepayroll Small Business Scorecard.

The monthly report from Glenview, Ill.-based Surepayroll found that hiring at Phoenix-area small businesses rose 0.4 percent, following a 0.3 percent increase in February.

While hiring rose for a second straight month, employers pulled back a bit on pay in March. The average paycheck dipped 0.3 percent last month, erasing the 0.3 percent gain from February.

Year-over-year, both hiring and pay are up 2.4 percent at Phoenix small businesses.

Nationally, both hiring and paychecks were down at the country’s small businesses. Hiring fell 0.2 percent in March and the average paycheck dipped 0.1 percent.

Year-over-year, nationwide hiring and the average paycheck are down 1.4 percent and 0.1 percent, respectively.

The scorecard also gauges small-business owners’ optimism about economic conditions. Optimism in March rose to 68 percent, up from 59 percent in February.

As much as 80 percent of respondents said the first quarter either matched or exceeded expectations, even while 58 percent said events such as the fiscal cliff tax deal, end of the payroll tax holiday and sequestration had a negative impact on business.

Half of owners surveyed said they plan to make new investments in their businesses during the second quarter in areas such as new staff, technology and marketing.

“Right now we seem to have a tale of two economies with small businesses. While half are ready to invest in things like hiring and new technology, the other half are still being cautious,” said SurePayroll CEO and President Michael Alter. “While some feel they have been negatively impacted by events out of their control, such as the payroll tax increase, sequester and fiscal cliff deal, the jump in optimism this month suggests at least some are ready to move forward with the recovery.”

SurePayroll’s Scorecard compiles data from small businesses nationwide, and reflects the trends affecting the nation’s “micro businesses” — those with an average of eight employees.